Bitcoin bounces back to $ 57,000 at the start of the new week after an upward move over the weekend produced a much better weekly close than many expected.
To offset last week’s coronavirus sell-off that drove the price down, Bitcoin broke the $ 58,000 mark before being corrected, but is still up about 4.7% as of press.
With the current situation, nobody can be safe in the coming hours and days. The threat of the epidemic is still present and sellers are “lurking” to take advantage of the optimists on the recent upward trend.
Less than 24 hours before the end of November, the article will analyze the factors that have the potential to affect Bitcoin price action this week.
Just 3 days after losing $ 6,000 on a daily candle, BTC has bounced back from the abyss.
At the end of the week, the price rebounded to close the week at $ 57,300, avoiding a 2 month weekend low.
The upside momentum stopped there, however, with $ 57,000 still in focus at press time.
In one analysis Recently, well-known trader and analyst Rekt Capital noted that the 21-week exponential moving average (EMA) at USD 52,500 is a “proven bull market indicator” offering support. He emphasized:
“BTC reacts strongly from the 21-week EMA area.”
1-week BTC / USD candlestick chart and 21-week EMA | Source: TradingView
However, despite the local high of $ 58,300, Bitcoin has yet to break out significantly as it failed to break the resistance of the “heavy dollar” at $ 60,000.
All previous attempts to convert this selling zone into support since the loss have been fiercely rejected.
https://twitter.com/Pladizow/status/1465180428407607303?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
The data shows the price hike surprised some, with liquidations worth nearly $ 300 million in the past 24 hours.
Funding rate on Sunday was neutral but now rising, signaling a return to optimism.
“All you need is a daily + 7% candle to dispel any fear and fear of the new bear market,” Rekt Capital Say more.
He said BTC is “doing well” as it nears the end of the month late Tuesday, which is expected to close above $ 58,700.
The source: Rect capital
Macro markets started the week in turmoil when the new Coronavirus variant Omicron shook market sentiment.
“We really need a few more answers to understand the impact on growth. Risk assets price in uncertainty, ”said Priya Misra, head of global rate strategy at TD Securities. called today.
There was massive volatility across the board last week as bitcoin and altcoins that followed stocks, oil and other assets plunged into a lightning sell-off.
As of the beginning of this week, that trend continues in the Asian market, with a 1-2% decline at the time of writing.
Hence, despite Bitcoin’s rebound, further disruptions in macrostructures could hamper the newfound optimism.
The bulls anticipate a similar scenario to March 2020 when the coronavirus hit markets around the world and then sparked an unprecedented bull run.
A Twitter user demonstrate Advice:
“A lot of people seem to be scared of the Bitcoin liquidation event like March 2020. If you are not using leverage, then there is nothing to worry about. If it happens, I predict that it will be very quick and brutal. Those who try to act fail miserably. Hold on and collect. ”
However, some familiar faces have criticized Bitcoin for not being able to evade the risk.
“Less risk does not make Bitcoin secure”, Peter Schiff Arguments on Friday predict that bitcoin will eventually become “as risky as any altcoin”.
BTC price 4-hour chart | The source: TradingView
Those concerned about a correction in current levels may not need to look too far on the BTC price chart.
According to the latest order book data from the analysis platform Material Scientist, a massive buywall will keep the market above $ 50,000.
The likelihood of this is very high. Some said over the weekend that they would rethink their approach to Bitcoin if they didn’t hold this level, but given the size of the strong support, it seems unlikely.
“I don’t know why you are all so scared. This is the most important purchase price since the low of US $ 30,000. ”
BTC / USD order book card | The source: Materials scientist
When comparing $ 50,000 to a new $ 30,000, the current retracement from all-time highs is negligible compared to other times – not least the nearly 50% decline in May.
As we went on, Material Scientist noticed something unusual: the very entity that created support is also creating a resistance at $ 70,000.
“Essentially, one player keeps the entire market within reach. They knew a month in advance how the whole thing was going to develop. ”
Therefore, $ 70,000 is an important level for bulls looking to resume the bull cycle before the end of the fourth quarter of 2021.
The next few weeks will be “talkative” for Bitcoin as it “makes or breaks” a number of important correlations.
This was the conclusion drawn by prominent analyst TechDev over the weekend when Bitcoin repeated the journey of gold since the 1970s.
The eerie similarity between BTC / USD in 2020-21 and XAU / USD 50 years ago despite some unusual fluctuations in Bitcoin price movement.
If the trend continues, Bitcoin will rebound strongly, peaking at $ 280,000 by mid-February 2022.
“The 1970 gold fractal is now precisely aligned and pinned to both local highs and lows. Only December / January is affected, with the pattern extending into the first half of February. ”
BTC / USD andGold in years 1970 | The source: TechDev
The accompanying analysis shows that the price of Bitcoin has been correctly predicted since September and that this month’s movement is causing it to deviate from its trajectory. In December, the crypto king is slated to touch the $ 70,000 to $ 110,000 region.
In addition to gold, the Fibonacci sequence is 2 are related to each other More will be validated in the coming weeks.
Both relate to the relationship between Bitcoin and 2017 performance. So far, both are valid. If one side wins the other, the rate and magnitude of the price increase will change accordingly.
A high of $ 150,000 could hit as early as mid-December or $ 225,000 in mid-February.
https://twitter.com/TechDev_52/status/1464741025520537612?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
“Two more models are currently following:
1. BTC 2017 flattened and aligned by log 1,272. Expected high point: the end of December.
2. BTC 2017 flattened and aligned by log 1,618. Expected high point: first half of February ″.
“Mid-December to the end of January with a peak value of ~ 230,000 is still my base scenario. Model 1 obviously seems less likely. I didn’t care if it was true. It peaked in mid-December through mid-March, with a target of between $ 120,000 and $ 260,000, ”he added.
He reacted to the cheers from Global Macro Investor founder Raoul Pal and emphasized that the coming weeks will be “remarkable” for all three correlations.
That used to be the question everyone was asking themselves, but now they are slowly accepting that this bull market may take longer than intended to mature.
Even so, the short-term optimism has not disappeared.
In one opinion poll conducted by the Bitcoin Twitter account, which ended on Monday, the majority of the nearly 50,000 respondents predicted that BTC will end above $ 60,000 in November.
In the survey, 35% chose the highest possible price and 25.7% predicted a November closing price between $ 55,000 and $ 60,000.
Poll Results | The source: Bitcoin
Without zooming out on the chart, it’s easy to forget how far Bitcoin has come in the past 12 months. On Thanksgiving last year (which also saw a brief sell-off), BTC traded for less than $ 16,500.
As a quantum analyst, Benjamin Cowen summary last weekend:
“Don’t get too focused on details and miss out on the big picture.”
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Minh Anh
According to Cointelegraph
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